docwra Posted January 3, 2017 Share Posted January 3, 2017 I've since started investing in stocks and shares given they have a much better return if you know what you're doing With the greatest of respect thats not really accurate, no-one can offer a guaranteed return on the stockmarket otherwise we would all be at it. Quote Link to comment Share on other sites More sharing options...
ATTAK Z Posted January 3, 2017 Author Share Posted January 3, 2017 (edited) It's a good game this ... I recently bought a car through CarWow ... I got 20.7% off list, so a good deal ... the discount included £1k manufacturer's contribution if I took out 0% finance deal which I will do. I now have to put down about £5K deposit which I'll do with a new 0% credit card and I'll invest the cash I would have used in a 5% interest account. The monthly payments for the next year will also be paid by said credit card and I'll invest that money in a 5% interest account too. At the end of 12months I'll do the same again and (hopefully) get a bonus for switching the current account and get another 0% credit card. At the end of that period I'll probably pay off the car with cash and interest earned ... The car's for Mrs ATTAK Z so she's happy, I've saved money and will make money on the investment, so I'm happy, and I've sold the old car privately for a good price which has already been invested. Also the new car is zero road tax if it's registered before April (which it will be) So that's a WIN WIN WIN WIN WIN WIN situation if my calculations are correct ...happy days ETA and I get 0.5% cash back on all credit card purchases ... Edited January 3, 2017 by ATTAK Z 1 Quote Link to comment Share on other sites More sharing options...
Strudul Posted January 3, 2017 Share Posted January 3, 2017 (edited) It's a good game this ... I recently bought a car through CarWow ... I got 20.7% off list, so a good deal ... the discount included £1k manufacturer's contribution if I took out 0% finance deal which I will do. I now have to put down about £5K deposit which I'll do with a new 0% credit card and I'll invest the cash I would have used to invest in a 5% interest account. The monthly payments for the next year will also be paid by said credit card and I'll invest that money in a 5% interest account too. At the end of 12months I'll do the same again and (hopefully) get a bonus for switching the current account and get another 0% credit card. At the end of that period I'll probably pay off the car (with cash and interest earned ... The car's for Mrs ATTAK Z so she's happy, I've saved money and will make money on the investment, so I'm happy, and I've sold the old car privately for a good price which has already been invested. Also the new car is zero road tax if it's registered before April (which it will be) So that's a WIN WIN WIN WIN WIN WIN situation if my calculations are correct ...happy days ETA and I get 0.5% cash back on all credit card purchases ... Was about to say you missed out on the credit card cashback (0.5% with Nationwide Select and there's a few others who offer similar), but you just got that ninja edit in there Got all excited from the first line and thought you'd taken the plunge on the Vette Edited January 3, 2017 by Strudul 1 Quote Link to comment Share on other sites More sharing options...
-G- Posted January 3, 2017 Share Posted January 3, 2017 I've since started investing in stocks and shares given they have a much better return if you know what you're doing With the greatest of respect thats not really accurate, no-one can offer a guaranteed return on the stockmarket otherwise we would all be at it. What part of my statement guaranteed a return? I added a caveat deliberately. Quote Link to comment Share on other sites More sharing options...
Strudul Posted January 3, 2017 Share Posted January 3, 2017 What part of my statement guaranteed a return? I added a caveat deliberately. English can be a bit ambiguous. You could argue that even if you "know what you are doing" you can still lose out. "They can have a much better return" would have been better Quote Link to comment Share on other sites More sharing options...
Randy_Baton Posted January 3, 2017 Share Posted January 3, 2017 You can have: -Tesco 2x £3k (£6k) -TSB 2x at £1.5k (£3k) (1x solo, 1x joint, but I managed to get 2 solo and 2 joint ) -Lloyds 1x £5k -Nationwide 2x £2.5k (£5k) (1x solo, 1x joint) -Bank of Scotland 3x £5k (£15k) -Halifax 2x £3pm (£6) -Various monthly savers at 3%+ £250-£500pm Are these all savings accounts you can have without opening a current account? I thought having too many bank accounts was bad for your credit score? I've got a 30% housing deposit in a stocks and shares ISA, but I sold all the stocks around 18 months ago so its just sitting in cash on a S&S ISA. Which means its generating next to nothing. I didn't want to take it out of the ISA wrapper as it took years to build up the total value and was hoping the cash ISA rate might rise at some point. I put the full amount into the first direct monthly saver and a Halifax help to buy ISA, but there's more I could do. The Zeditis is wearing off... Quote Link to comment Share on other sites More sharing options...
ATTAK Z Posted January 3, 2017 Author Share Posted January 3, 2017 (edited) You can have: -Tesco 2x £3k (£6k) -TSB 2x at £1.5k (£3k) (1x solo, 1x joint, but I managed to get 2 solo and 2 joint ) -Lloyds 1x £5k -Nationwide 2x £2.5k (£5k) (1x solo, 1x joint) -Bank of Scotland 3x £5k (£15k) -Halifax 2x £3pm (£6) -Various monthly savers at 3%+ £250-£500pm Are these all savings accounts you can have without opening a current account? I thought having too many bank accounts was bad for your credit score? I've got a 30% housing deposit in a stocks and shares ISA, but I sold all the stocks around 18 months ago so its just sitting in cash on a S&S ISA. Which means its generating next to nothing. I didn't want to take it out of the ISA wrapper as it took years to build up the total value and was hoping the cash ISA rate might rise at some point. I put the full amount into the first direct monthly saver and a Halifax help to buy ISA, but there's more I could do. The Zeditis is wearing off... Most of the high interest accounts are current accounts Most of the high interest savings accounts require you to open a current account Generally speaking Don't think opening more accounts affects your credit rating ... I've opened about 6 or 7 new ones in the last 12 months with no adverse effect Edited January 3, 2017 by ATTAK Z Quote Link to comment Share on other sites More sharing options...
Strudul Posted January 3, 2017 Share Posted January 3, 2017 You can have: -Tesco 2x £3k (£6k) -TSB 2x at £1.5k (£3k) (1x solo, 1x joint, but I managed to get 2 solo and 2 joint ) -Lloyds 1x £5k -Nationwide 2x £2.5k (£5k) (1x solo, 1x joint) -Bank of Scotland 3x £5k (£15k) -Halifax 2x £3pm (£6) -Various monthly savers at 3%+ £250-£500pm Are these all savings accounts you can have without opening a current account? I thought having too many bank accounts was bad for your credit score? All current accounts bar the monthly savers (but those usually require you to open a corresponding current account). Having lots of accounts won't negatively impact your score, opening lots of current accounts will, but it's not drastic, and your score will go back up again. Quote Link to comment Share on other sites More sharing options...
Strudul Posted January 3, 2017 Share Posted January 3, 2017 (edited) Don't think opening more accounts affects your credit rating ... I've opened about 6 or 7 new ones in the last 12 months with no adverse effect Mine went down occasionally when i opened accounts, and it said this was one of the causes, but overall my score has gone up. Edited January 3, 2017 by Strudul Quote Link to comment Share on other sites More sharing options...
gangzoom Posted January 4, 2017 Share Posted January 4, 2017 (edited) I've got a 30% housing deposit in a stocks and shares ISA, but I sold all the stocks around 18 months ago so its just sitting in cash on a S&S ISA. Which means its generating next to nothing. I didn't want to take it out of the ISA wrapper as it took years to build up the total value and was hoping the cash ISA rate might rise at some point. As others have said if your after big/significant gains the stock market is where you need to be, but clearly your initial investment is at risk. It all depends on your goal, the main way I grow our family savings pot is by making sure we save X% of out monthly pay every months, over the last few months that has been as much as 50%. We've cut out nearly every none essential outgoing (sky/gym/meals out/cinema/presents at xmas time) and this has allowed us to build our savings pot much quicker than relying on interest. Because we've given up things to save the money I just cannot bring myself to expose the savings to any risk of reducing in value regardless of how little that risk might be, in any case the 'fun' bit about to start, spending the money... It'll all be gone soon on new car and house move, after which we'll rebuild the pot Edited January 4, 2017 by gangzoom Quote Link to comment Share on other sites More sharing options...
coldel Posted January 4, 2017 Share Posted January 4, 2017 We have been a bit lazy with our savings, we have a few maxed out 123 accounts plus another maxed out savings account but interest rates are just shocking. I would like to think I would be more pro-active in switching etc but the time required to work it all through for a couple of extra hundred quid a year really isn't worth it, have so much to deal with as it is. Saw Martin mention premium bonds, they are an option but one persons happy story is anothers sad one, thats how it works as the winnings pot is divided up unevenly more people lose out than win. A couple of handy links here: http://www.moneysavingexpert.com/savings/premium-bonds http://www.moneysavingexpert.com/savings/premium-bonds-calculator/#result Quote Link to comment Share on other sites More sharing options...
docwra Posted January 4, 2017 Share Posted January 4, 2017 As others have said if your after big/significant gains the stock market is where you need to be, but clearly your initial investment is at risk. Apparently not "if you know what youre doing". This is why every stockbroker is worth at least £100m and none have ever lost their jobs, ever. Quote Link to comment Share on other sites More sharing options...
rabbitstew Posted January 4, 2017 Share Posted January 4, 2017 I dumped a lot of my savings into premium bonds this year and the return ive got is miles more than the interest I could have got in any bank account. How long that will remain like that I dont know but we shall see. I also bought my 997 turbo, not only as my daily driver, but as a kind of investment. I am hoping that if/when I come to sell it in the future I wont loose as much money on it as I usually do in vehicle depreciation. Lad at work has turned into some sort of property tycoon atm and is investing his cash in the buy-to-let market. I personally thought that had all died a death now, but he seems to think he will be a millionaire before long. Quote Link to comment Share on other sites More sharing options...
coldel Posted January 4, 2017 Share Posted January 4, 2017 I think if you put a lot of money into premium bonds you get a reasonable return as you increase your odds. If people are sticking in $5k then over the course of the year the average earning is around £50. Clearly some people get 'lucky' and earn more, but that's not a function of premium bonds being better than a savings account, it literally means you got lucky in the draw and many people didn't. 1 Quote Link to comment Share on other sites More sharing options...
Strudul Posted January 4, 2017 Share Posted January 4, 2017 Lad at work has turned into some sort of property tycoon atm and is investing his cash in the buy-to-let market. I personally thought that had all died a death now, but he seems to think he will be a millionaire before long. I hear conflicting stuff from buy-to-let and renting property in general. You see stories where landlords can't even recoup their costs from rent, but where I lived in an HMO (House in Multiple Occupation), the rent was around £500pm each (per bedroom with a shared living room / kitchen) with 5 people living there, so £2.5k a month total for a landlord minus bills and fees etc. To rent the same house (literally next door) with the same spec was only £750 per month for the whole house. Quote Link to comment Share on other sites More sharing options...
docwra Posted January 4, 2017 Share Posted January 4, 2017 The difference these days is that you need at least a 25% deposit and tax is now paid on income rather than profit. A small increase in interest rate along with a drop in value could leave you losing money with no way out. Im looking into short term rentals atm as the returns are much better if they are occupied (and Cambridge is boomtown atm) but Im leaning towards putting it into a car instead as there is less risk and significantly more enjoyment Quote Link to comment Share on other sites More sharing options...
gangzoom Posted January 4, 2017 Share Posted January 4, 2017 Don't forget the additional rate stamp duty on buy to lets. 1 Quote Link to comment Share on other sites More sharing options...
ATTAK Z Posted January 4, 2017 Author Share Posted January 4, 2017 Good thread this though I say it myself Quote Link to comment Share on other sites More sharing options...
gangzoom Posted January 5, 2017 Share Posted January 5, 2017 This article on the BBC website is rather worrying.. http://www.bbc.co.uk/news/education-38370219 The otherside of low interest rates is ofcourse cheaper loans. Afterall its part of the economic plan by the Chancellor to get people spending. Worryingly even we have been suckered in by going for a property much more expensive than previously planned due to stupidity cheap mortgages. Leave your money in the bank and watch it loss value as the £ weakens and inflation goes up, or spend it and than worry about having no savings. Great situation the Chancellor has put people in. Quote Link to comment Share on other sites More sharing options...
gangzoom Posted January 5, 2017 Share Posted January 5, 2017 (edited) Lad at work has turned into some sort of property tycoon atm and is investing his cash in the buy-to-let market. I personally thought that had all died a death now, but he seems to think he will be a millionaire before long. Not unless his already a millionaire. London house prices are already falling, the rest of the country will follow. Even the smallest rise in interest rates could send the whole market into a nose dive, its the cheap mortgages propping up the prices. As for been a land lord, my friends own a flat in London, the police turned up at their front door at 4am because the tenant had turned the flat into a cannabis factory!! Other friends have tenants that defaultes on their rent nearly every other month and now having to look into forced eviction. It's hard because the income for family in the house has dropped due to unemployment and there are kids in the house, but at the same time my friends are losing money every months essentially paying the mortgage on the house with no rental income. There is money to be made but its not easy or risk free. Edited January 5, 2017 by gangzoom Quote Link to comment Share on other sites More sharing options...
Strudul Posted January 5, 2017 Share Posted January 5, 2017 As for been a land lord, my friends own a flat in London, the police turned up at their front door at 4am because the tenant had turned the flat into a cannabis factory!! Other friends have tenants that defaultes on their rent nearly every other month and now having to look into forced eviction. It's hard because the income for family in the house has dropped due to unemployment and there are kids in the house, but at the same time my friends are losing money every months essentially paying the mortgage on the house with no rental income. There is money to be made but its not easy or risk free. Which is why you either pass responsibility onto a letting agency or scrutinise any potential tenants until you find good ones. Quote Link to comment Share on other sites More sharing options...
-G- Posted January 5, 2017 Share Posted January 5, 2017 I didn't particularly want to become a landlord - indeed I shelled out a lot of money completely renovating my old flat (heating, glazing, new front door, kitchen, bathroom, dining room, lounge, bedrooms, the lot) before I met the Missus. As she had her own house as well, when it came to buying a house together we fell foul of the LBTT supplementary charge on having more than one property, so got royally screwed. Sure, we could have sold our houses, but the way the market is at the moment we would have lost a shed load of money on what we spent improving our homes (important distinction HOME) so our only alternative is to rent our places out short-term until we can decide whether being a landlord fits with what we want to do long-term. If Aberdeen's housing market improves significantly in 18 months there's a slim possibility we will get the "additional dwelling supplement" portion of our LBTT back & pay naff-all in capital gains tax (not that I can envisage either turning a profit, mind you) but that hinges on the POO heading significantly further north than 60USB/BBL. I daresay the POO has very little impact on the house-prices of other regions - except maybe Norwich? Does anyone know? Quote Link to comment Share on other sites More sharing options...
leonk Posted January 5, 2017 Share Posted January 5, 2017 Russian banks are offering 10% on fixed term savings and the ruble has bottomed out at 80 rubles to the pound. Just a thought. Quote Link to comment Share on other sites More sharing options...
Strudul Posted January 5, 2017 Share Posted January 5, 2017 I daresay the POO has very little impact on the house-prices of other regions - except maybe Norwich? Does anyone know? I think POO would heavily impact a house price in a negative way. Sorry, I have no idea what it means and googling for "POO" related terms didn't help but further the giggling. 1 Quote Link to comment Share on other sites More sharing options...
-G- Posted January 5, 2017 Share Posted January 5, 2017 Price of Oil Quote Link to comment Share on other sites More sharing options...
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